New Delhi | Adjustment in exchange rates and reforms in areas like land, labour and logistics would help enhance competitiveness of India’s trade in the global markets, research firm CUTS International (Consumer Unity & Trust Society) today said. Given the important role that trade can and should play in our economic growth, relevant government agencies in India need to adjust exchange rates in a manner that they make our trade more competitive, without much pressure on our inflation, it said in a statement.
It also said the government should take immediate steps both at the centre and state level to bring reforms in areas like land, labour, capital and logistics. Over-valued rupee and inadequate structural reforms are affecting India’s trade competitiveness in the global market, it said adding exports of goods such as petroleum products, gems and jewellery, readymade garments have come down both in value and volume terms. Global factors too are contributing to the slowdown of the world trade, CUTS International said.
During April-February period of this fiscal, cumulative exports declined 16.73 per cent to USD 238.41 billion, as against USD 286.3 billion in the same months of 2014-15. Imports too dipped 14.74 per cent to USD 351.8 billion in the 11-month period, leaving a trade deficit of USD 113.38 billion. The trade gap was USD 126.29 billion in the same period of 2014-15.
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